It is no secret that if our conservative friends had their way, the Social Security and Medicare programs would go the way of the IBM Selectric and fade into oblivion.
Regarding Social Security, it has been no secret that the so-called “reserves” would be exhausted in the late 2030s. The 2011 report tells us the exhaustion date of reserves is now 2036, one year earlier than previously expected. The report states this change “reflects lower estimates for death rates at advanced ages, a slower economic recovery than was assumed last year, and the one-year advance of the valuation period from 2010-2084 to 2011-2085.” (If you understand that last provision, the government will hire you to obfuscate.)
The 2011 report also states:
“Social Security expenditures exceeded the program’s non-interest income in 2010 for the first time since 1983. The $49 billion deficit last year (excluding interest income) and $46 billion projected deficit in 2011 are in large part due to the weakened economy and to downward income adjustments that correct for excess payroll tax revenue credited to the trust funds in earlier years.”
Look at that last section beginning “downward income adjustments….
Say what? What excess payroll tax revenue? Did they overcharge us the last forty or fifty years, and if they did, do you think they would tell us? HA!
Instead, I think what we have here is bit of government-speak, that is the bureaucratic obscurantism developed for the sole use of the political types who find a successful career by hiding in ambiguity.
In other words, I think we are being fed a load of crap.
I believe the downward income adjustments mentioned in the report result from the 2010 decrease in payroll tax withholding (the workers’ Soc Security contribution.) This cut is purported to boost the economy by putting more money in workers’ pockets.
So, we have the trustees telling us that downward income adjustments are hurting the future stability of the Social Security program and our President calling for a continuation into 2012 of these cuts and also proposing to cut employers’ contributions by the same amount.
I can see the Republicans who want to kill Social Security rubbing their grubby little paws together in greedy glee.
Regarding Social Security, it has been no secret that the so-called “reserves” would be exhausted in the late 2030s. The 2011 report tells us the exhaustion date of reserves is now 2036, one year earlier than previously expected. The report states this change “reflects lower estimates for death rates at advanced ages, a slower economic recovery than was assumed last year, and the one-year advance of the valuation period from 2010-2084 to 2011-2085.” (If you understand that last provision, the government will hire you to obfuscate.)
The 2011 report also states:
“Social Security expenditures exceeded the program’s non-interest income in 2010 for the first time since 1983. The $49 billion deficit last year (excluding interest income) and $46 billion projected deficit in 2011 are in large part due to the weakened economy and to downward income adjustments that correct for excess payroll tax revenue credited to the trust funds in earlier years.”
Look at that last section beginning “downward income adjustments….
Say what? What excess payroll tax revenue? Did they overcharge us the last forty or fifty years, and if they did, do you think they would tell us? HA!
Instead, I think what we have here is bit of government-speak, that is the bureaucratic obscurantism developed for the sole use of the political types who find a successful career by hiding in ambiguity.
In other words, I think we are being fed a load of crap.
I believe the downward income adjustments mentioned in the report result from the 2010 decrease in payroll tax withholding (the workers’ Soc Security contribution.) This cut is purported to boost the economy by putting more money in workers’ pockets.
So, we have the trustees telling us that downward income adjustments are hurting the future stability of the Social Security program and our President calling for a continuation into 2012 of these cuts and also proposing to cut employers’ contributions by the same amount.
I can see the Republicans who want to kill Social Security rubbing their grubby little paws together in greedy glee.
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